Malaysia to roll out new US$9.7b stimulus package

[KUALA LUMPUR] Malaysian Prime Minister Muhyiddin Yassin on Monday announced an additional US$9.70 billion stimulus package, ahead of the imposition of stricter lockdown measures this week to curb the spread of Covid-19.

The package include a RM5 billion (S$1.6 billion) fiscal injection, Mr Muhyiddin said in a televised address.

“If drastic action is not taken immediately, it is of concern that the healthcare system in our country will collapse and we will face a greater catastrophe,” Mr Muhyiddin said in a televised address.

Since last year, Malaysia has rolled out around RM340 billion in aid and stimulus measures to cushion the impact of the pandemic on the economy.

The new relief measures include RM2.1 billion in handouts, loan moratorium to some, grants to small and medium businesses, and salary subsidies for those affected by lockdown measures, Mr Muhyiddin said.

The government will also spend RM1 billion to boost healthcare capacity, he said.

Malaysia’s economy was on the path to recovery in the first quarter before infections began to spike.

It fell 5.6 per cent in 2020, its worst annual performance since the Asian financial crisis, but the central bank had projected growth of 6 per cent-7.5 per cent this year

REUTERS